SAMREC Committee Minutes

25 May 2017

MINUTES OF THE SAMREC COMMITTEE MEETING

HELD ON 25 MAY 2017 AT 09:45

MIDSHAFT BOARDROOM, MINING PRECINCT, CARLOW ROAD

Present: K Lomberg (Chairman)

A Clay S Mathuray
R Croll U Nondula
T Flitton S Rupprecht
T Marshall M Tlala

Apologies:

In Attendance: C Jardine, SAIMM

G Mazibuko, SAIMM

1. WELCOME

The Chairman welcomed everyone to the meeting, especially those attending for the first
time (Santhoshini Mathuray (Anglo-American), Unathi Nondula (Council for Geoscience)
and Mpho Tlala (independent, SAIMM Council Member). Mr Clay advised that he was
retiring from Committee activities.

2. ACCEPTANCE OF PREVIOUS MINUTES

The minutes of the meeting held on 24 November 2016 were accepted as being a true
reflection of proceedings.

3. MATTERS ARISING

The summary list of key action items discussed as follows:

Mr Lomberg confirmed that the list of meetings for 2017 had been sent to members.
Four meetings had been planned for next 2017r, in line with the quarterly SSC meetings,
i.e. February, May, August and November. He asked members to note that the venue
for the remainder of meetings in 2017 had changed to the Midshaft Boardroom, Carlow
Road Mining Precinct.

On the question of the SEC Guide 7, Ms Flitton reported that the link to the SEC Guide 7
had been sent to Mr van den Berg. She agreed to resend this to Ms Jardine for
circulation to all committee members.
Action: Tarryn Flitton

1
SAMREC Committee Minutes
25 May 2017

Regarding the previous suggestion from Dr Rupprecht that a note be put out by
SAIMM/GSSA to remind readers that this Code was now official; some of the submissions
made to the JSE still showed confusion around which Code was valid.

It was confirmed that Mr John Sullivan had assisted Ms Redman with the recent coal
complaint.

Mr Lomberg advised that he did not attend the SAMVAL Committee’s February meeting
to discuss CPR certificate wording.

Ms Flitton reported that she had started dialogue with Mr Mark Austin around research
options for putting the Codes on an app, but that ultimately an application would be
expensive. Mr Lomberg suggested putting together a PowerPoint presentation with the
relevant links. In addition, he advised that other options such as Facebook and LinkedIn
should also be explored. He believed that a Wikipedia article would be very beneficial.
This matter was ongoing.
Action: Tarryn Flitton

4. OUTSTANDING ISSUES FOR SAMREC

Mr Lomberg suggested that a list should be drawn up of issues that the current Code had
not addressed, i.e. “parking lot issues”. These included:

- Possible reserves

- A minor glitch in the Code; under “indicated resources”, the definition stated:
“Geology and grade …..” but the guide stated: “or”.

- There should be guidance on how the “exclusive/inclusive” should be done, as it was

not just a reduction of the reserve. The Code did not include this and a paragraph
should be added for guidance.

- A previous parked issue was the valuation outputs and there had historically been
challenges with discount prices. A position paper had been prepared, saying that the
Code was too prescriptive and suggesting that a spot price should always be quoted.
Regarding inclusive and exclusive, Mr Clay believed it would be good to always have
this as inclusive. Some debate followed and Dr Rupprecht proposed giving guidance
on the one set, i.e. exclusive, as this was lacking. Mr Croll cautioned against
providing too much guidance, as this would make the Code too big and cumbersome.
Mr Lomberg suggested that the guidance would be discussed outside of the Code in
order to avoid having to rewrite the Code when new issues arose. These would be
put into the public domain through formal presentations and that would guide users
of the Code.

- CPR mentoring – a large part of the current focus was on training.

- Statutory requirements for Competent Persons in terms of belonging to a

professional body/learned society/voluntary association, etc

- Limits in cut-offs, with emphasis on the Competent Person making sure that the
inputs used to calculated the cut-off are correct and the payment for reserves is
correct. That should be linked to SAMVAL for common understanding.

- Confirmation of the economics of a resource.

2
SAMREC Committee Minutes
25 May 2017

Dr Rupprecht suggested that any issues that had not been mentioned should be
submitted to Mr Lomberg. The immediate plan was of action was to draw up the list of
matters to be dealt with.

5. TRAINING

Mr Lomberg advised that a basic training course would be presented on 08 and 09 June
on SAMREC/JSE compliance. One day would be SAMREC-based and the other would be
more to do with CPRs.

An advanced SAMREC course was scheduled to take place in August (rescheduled from
April). That would be a two-day course to look at metals, base metals, diamonds, coal
and an evaluation session. Mr Lomberg confirmed that this would be an interactive
workshop.

There had been talk about having a basic SAMREC Course in Cape Town, but this was
dependent on the level of interest. Dr Rupprecht suggested tying up such a course with
the Indaba, but Mr Lomberg responded that people generally attended the Indaba with
the aim of gaining business. Further discussion followed and it was suggested that a
brochure be included in the Indaba conference pack. Mr Croll also recommended going
directly to the mining companies to set up timeslots with the relevant people, i.e.
competent persons and not senior executives. Dr Rupprecht responded that the senior
people were generally the decision makers who should be driving the training. Another
alternative was for directors to complete the JSE self-evaluation course.

Mr Lomberg asked whether there should be another Conference in 2018. Dr Rupprecht

believed it was a good idea, but that agreement should be reached on the level of the
target audience. Mr Lomberg agreed to liaise with Ms Jardine regarding putting out fliers
to gauge interest. SAMVAL and SAMESG would also be contacted to get input.
Action: Ken Lomberg

Regarding contributions to the SAMCODES website; Ms Flitton, Dr Rupprecht and a few

others had made submissions, but volunteers were still being sought to provide two-
page articles on issues topical to the Codes. Mr Lomberg requested members to assist.
Dr Rupprecht suggested that one topic could cover “Best Practice on Reporting”.
Action: All Members

Mr Tlala noted that the training was geared towards updating people. He mentioned that
there was a gap between graduate and competent persons. Mr Lomberg responded that
if there was an area where Mr Tlala perceived a gap in training, concrete suggestions
should be put forward on how to address this. The challenge with putting together a
formal programme was that SAMREC was made up of volunteers and there was no
budget for this. He requested Mr Tlala to investigate further and bring possible solutions
to SAMREC.
Action: Mpho Tlala

6. CRIRSCO

Mr Lomberg advised that a CRIRSCO meeting was scheduled to take place in Indonesia
in October 2017. The programme had not been finalised.

He also reported that ISO was trying to put together a reporting code, driven by an
American. ISO worldwide was getting involved in this and Mr Lomberg requested
members to share any additional information with him in this regard.

3
SAMREC Committee Minutes
25 May 2017

7. GENERAL

Mr Clay wished all members well in their future endeavours.

8. CLOSING

The Chairman closed the meeting.

SUMMARY OF KEY ACTION ITEMS

Tarryn Flitton:
Send out link regarding SEC Guide 7 responses to Camielah Jardine for circulation to all
committee members

Tarryn Flitton:
Liaise with Mark Austin to research options regarding putting SAMCODES on an app.

Ken Lomberg:
Liaise with Camielah Jardine regarding putting out fliers at 2018 Conference regarding
SAMREC training

All Members:
Assist with submissions to SAMCODES website (two-page articles)

Mpho Tlala
Investigate training gap between graduates and competent persons and submit possible
solutions in terms of trainers and budget